Description
The looming commercial real estate crisis gained national attention this week. Blackstone, Deutsche Bank, and Harvard Business all point to the staggering challenges facing the commercial real estate sector; especially the office sector.
The challenges to commercial real estate include but are not limited to: rising interest rates, upside LTV ratios, increased equity positions, inflation, rising labor, rising insurance premiums, rising energy cost, less demand for office, lower occupancy, lower CRE values, rent caps, etc. How will this settle in the rest of 2024 and into 2025 and beyond?
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Jorge L. Morales is founder and president of Blue Box Real Estate, LLC - a commercial real estate firm in South Florida. Please visit www.blueboxre.com.
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